TORONTO, Sept. 10 /PRNewswire-FirstCall/ -- MDS Inc. (TSX: MDS;
NYSE: MDZ), a leading provider of products and services to the
global life sciences markets, today reported financial results for
the three-month period ended July 31, 2009. MDS reported total
revenue of $199 million, a net loss of $62 million and a loss per
share of $0.51 for the third quarter of 2009, compared with $252
million in total revenue, a net loss of $10 million and a loss per
share of $0.08 for the same period last year. Current quarter
results include non-cash write-downs for goodwill and fixed assets
of $37 million and $7 million, of which $12 million was reported in
discontinued operations. From continuing operations, MDS reported a
net loss of $48 million and a loss per share of $0.40, versus a net
loss of $5 million and a loss per share of $0.04 in 2008. Quarterly
Highlights - Net revenue of $192 million, down 21% from $244
million in the prior year. Excluding the impact of foreign exchange
and acquisitions, net revenue decreased 16%. - Adjusted EBITDA of
$8 million, versus $42 million in the prior year. Adjusted EBITDA
includes an embedded derivative gain of $11 million, partially
offset by a negative $3 million year-over-year impact of foreign
exchange. - Adjusted loss per share of $0.15, compared with
earnings per share of $0.07 in the prior year, primarily driven by
lower adjusted EBITDA. - Period-end cash position increased $55
million to $298 million as of the end of the third quarter. -
Continued actions in an attempt to establish a long-term supply
solution for Molybdenum-99 include (i) feasibility studies in a
collaboration with TRIUMF, Canada's national laboratory for
particle and nuclear physics; (ii) an agreement with the Karpov
Institute of Physical Chemistry in Russia to assess capability as a
potential supplier; and (iii) submission to the Government of
Canada's Expert Review Panel on Medical Isotopes and Technetium-99m
to receive expertise and guidance from the South African Nuclear
Energy Corporation to bring the MAPLE reactors online. "The
economic downturn, further softening in demand for contract
research organization services and the unexpected and prolonged
shutdown of AECL's National Research Universal (NRU) reactor
created significant challenges for our business," said Stephen P.
DeFalco, President and Chief Executive Officer, MDS Inc. "We
believe the announced strategic repositioning of MDS will unlock
the value of our businesses in the near-term, and provide greater
opportunities for each of our businesses going forward." Strategic
Repositioning On September 2, 2009, MDS announced it had entered
into an agreement to sell its MDS Analytical Technologies business
to Danaher Corporation (NYSE: DHR) for $650 million in cash, and
that it currently intends to return approximately $400 million to
$450 million of the sale proceeds to its shareholders. Transaction
and restructuring costs, associated with the sale, are expected to
be in the range of $45 million to $55 million on a pre-tax basis,
and no cash income taxes are expected. The completion of the sale
is subject to shareholder and regulatory approval, and other
closing conditions. In addition, the Company also announced that it
intends to sell its MDS Pharma Services business, and upon the
completion of these transactions would be focused solely on its MDS
Nordion business. These decisions follow a comprehensive strategic
review by a Special Committee of independent directors working with
Management and financial and legal advisors. The MDS Inc. Board of
Directors believes these actions are in the best interests of the
Company and its shareholders, and unanimously recommends that
shareholders vote in favor of the sale of MDS Analytical
Technologies. A Special Meeting of Shareholders to seek approval of
the proposed sale will be held on October 20, 2009 in Toronto. MDS
anticipates that a management proxy circular will be mailed later
this month to shareholders of record, as of September 14, 2009.
Operating Segment Results MDS Pharma Services Q3 2008(1) % Change
(millions of U.S. dollars) Q3 2009 Restated Reported
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Net revenue $ 49 $ 68 (28%) Reimbursement revenue 7 8
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Total revenue $ 56 $ 76
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Adjusted EBITDA $ (14) $ 1 n.m. (29%) 1%
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n.m. - not meaningful (1) The comparative figures have been
restated to conform to the current year's presentation of
discontinued operations. On June 1, 2009, MDS announced the sale of
its Phase II-IV operations to INC Research, Inc. and its intention
to sell the Central Labs operation. As a result, Late Stage
operations were reclassified as part of discontinuing operations
for financial reporting beginning in the third quarter of 2009. As
of the third quarter 2009, MDS Pharma Services results reflect only
Early Stage performance, which now includes certain functional
costs previously allocated to Late Stage operations. For the third
quarter, MDS Pharma Services reported net revenue of $49 million, a
decrease of 28% compared with $68 million last year. The
year-over-year decline was primarily due to lower demand for Phase
I and bioanalytical services as customers continue to reprioritize
research-and-development project pipelines. Adjusted EBITDA was a
loss of $14 million. This $15 million year-over-year decrease was
driven by a reduction of revenue and $1 million negative impact
from foreign exchange. As Early Stage contract research services
are shorter term in nature and do not generate the same degree of
backlog as longer term Late Stage contracts, the Company has
discontinued reporting backlog figures. With respect to orders, MDS
Pharma Services recorded new business wins totaling $52 million, a
sequential decrease of 15% compared with new business wins in the
second quarter, and down 31% compared with $75 million of new
business wins last year. Sequential and year-over-year declines in
new business wins were primarily due to further softening in
customer demand for Phase I services as customers continue to
reprioritize their R D pipelines in relation to economic pressures,
pharmaceutical company mergers, reduced biotech funding, and
customer concerns regarding uncertainties created by the Company's
strategic review process. As part of the Company's quarterly
balance sheet assessment, non-cash write-downs for MDS Pharma
Services totaling $32 million were recorded in the third quarter,
which included write-downs for goodwill and fixed assets of $25
million and $7 million, respectively. As previously announced, MDS
Pharma Services initiated restructuring actions in the third
quarter of 2009, which are expected to impact approximately 200
people and generate roughly $9 million in annual savings. A $5
million restructuring charge was recorded in the third quarter. To
date, approximately 50% of the restructuring actions were completed
in the third quarter of 2009. Additional cost reduction and
restructuring actions are under review. As part of its strategic
repositioning, MDS announced that it is actively seeking a buyer
for its MDS Pharma Services business, which is expected to provide
opportunities to build market leadership and to position the
business to better serve global customers in an increasingly
competitive contract research market. There can be no assurance
that MDS will complete a transaction involving MDS Pharma Services.
If MDS determines that there is not an acceptable transaction for
MDS Pharma Services, it intends to retain and invest in building
the business in the attractive market that it serves. MDS Nordion %
Change (millions of U.S. dollars) Q3 2009 Q3 2008 Reported
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Net revenue $ 49 $ 72 (32%)
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Adjusted EBITDA $ 21 $ 23 (9%) 43% 32%
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MDS Nordion reported revenue of $49 million in the third quarter,
down 32% compared with last year. The year-over-year decline in
revenue was primarily due to the shortage in medical-isotope supply
as a result of the AECL shutdown of the NRU reactor announced May
18, 2009, and the timing of cobalt shipments. Based on current
supply and demand, the Company expects to see an increase in cobalt
volumes in the fourth quarter of 2009. Adjusted EBITDA for the
third quarter was $21 million, including an embedded derivative
gain of $11 million, which resulted from amendments to the Russian
Cobalt Supply contract and the strengthening Canadian dollar this
quarter. There was no impact from embedded derivatives on adjusted
EBITDA last year. Excluding the impact of foreign exchange and the
embedded derivative, adjusted EBITDA decreased $14 million or 61%,
compared with last year, driven by the shortfall in medical isotope
and cobalt revenues. TheraSphere(R), a targeted internal radiation
therapy for patients with inoperable, primary liver cancer,
continued on its growth trajectory generating 23% year-over-year
revenue growth this quarter. As part of its strategic repositioning
plan, MDS intends to have MDS Nordion as its sole operating unit
with a goal to remain an innovative market leader delivering strong
financial performance. As previously reported, AECL announced that
its NRU reactor would be out of service to repair a heavy water
leak discovered in May 2009. On August 12, 2009, AECL further
clarified that the NRU would be out of service until at least the
first calendar quarter of 2010. Based on historical EBITDA trends
related to NRU-supplied isotopes, MDS expects the financial impact
of this shutdown to reduce MDS Nordion's adjusted EBITDA by
approximately $4 million for every month the NRU is out of service.
MDS Nordion continues to deliver positive EBITDA from sterilization
technologies and radiopharmaceuticals. MDS continues to move on
alternative paths intended to secure a long-term reliable supply of
medical isotopes. In 1996, MDS Nordion contracted with AECL to
complete and commission the MAPLE reactors, which were intended to
replace AECL's NRU. In May 2008, this project was unilaterally
discontinued by AECL and the Government of Canada. MDS has invested
over $350 million in the MAPLE project, and believes that the
completion of the MAPLE reactors is the best solution to provide
global medical isotope supply. MDS Nordion continues to urge the
AECL and Canadian government to consult with international experts
and obtain their assistance to activate the MAPLE reactors. In this
regard, MDS Nordion submitted a proposal to the Government of
Canada's Expert Review Panel on Medical Isotope and Technetium-99m
Generator Production. The proposal outlines how expertise and
guidance from the South African Nuclear Energy Corporation, owner
and operator of the SAFARI-I reactor, could help achieve a
technically sound and regulatory-approved solution within an
estimated 24 months. In addition, MDS Nordion is examining
alternative sources for long-term supply and announced two new
collaborations in the third quarter. MDS Nordion is working with
TRIUMF, Canada's national laboratory for particle and nuclear
physics, to study the feasibility of producing a viable and
reliable supply of photo fission-based Mo-99. MDS Nordion is also
collaborating with the Karpov Institute of Physical Chemistry in
Russia to study the feasibility of the Karpov Institute providing a
viable and reliable supply of Mo-99. MDS Analytical Technologies %
Change (millions of U.S. dollars) Q3 2009 Q3 2008 Reported
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Net revenue $ 94 $ 104 (10%)
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Adjusted EBITDA $ 13 $ 21 (38%) 14% 20%
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For the third quarter, MDS Analytical Technologies reported $94
million in revenue, a sequential increase of 8%, compared with the
second quarter of 2009, driven by the strength of the new AB/SCIEX
5500 series mass spectrometers. On a year-over-year basis, revenue
decreased 10%, compared with a strong third quarter last year. The
effect of foreign exchange reduced reported revenue by $7 million.
Including the impact of foreign exchange, total end-user revenue
decreased 15%. End-user demand for instruments from pharmaceutical
markets remained soft and was the primary driver for the
year-over-year decline in volumes across all product lines. In the
third quarter, MDS Analytical Technologies reported $13 million in
adjusted EBITDA, compared with $21 million in the corresponding
quarter last year. Excluding the $1 million of unfavorable impact
from foreign exchange, adjusted EBITDA decreased 29%, driven by
pricing and lower volumes, which were partially offset by
restructuring and productivity savings. As part of the strategic
repositioning of MDS, the Company has entered into an agreement to
sell MDS Analytical Technologies. Under the terms of the agreement,
Danaher will acquire the MDS Analytical Technologies business,
which includes approximately 1,100 employees operating in 10
countries. MDS is committed to working with Danaher, a strong
company with a track record of successful acquisitions, to achieve
a smooth and timely transition for customers and employees.
Corporate and Other Q3 2008(1) % Change (millions of U.S. dollars)
Q3 2009 Restated Reported
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Selling, general and administration $ (8) $ (4) 100%
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Adjusted EBITDA $ (12) $ (3) (300%)
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(1) The comparative figures have been restated to conform to the
current year's presentation of discontinued operations. Corporate
selling, general and administration expenses were $8 million in the
third quarter of 2009, compared with $4 million in the third
quarter of 2008. This year-over-year increase was primarily due to
$1 million of stock-based compensation expenses recognized this
quarter, versus a reported credit of $4 million in the previous
year quarter, and $1 million of corporate development costs
primarily associated with the ongoing strategic review, partially
offset by $1 million of year-over-year cost productivity. In
addition, a $4 million foreign exchange loss was recognized on the
revaluation of certain assets and liabilities in the quarter. MDS
delivered another strong quarter of cash performance. As of the end
of the third quarter, MDS reported $298 million in cash and cash
equivalents, up $55 million or 23% sequentially, and up $181
million or 155% year-to-date. Third quarter cash flow included $35
million in proceeds to date from the sale of MDS Pharma Services
Phase II-IV operations. Conference Call MDS will hold a conference
call today at 9:30 a.m. EDT to discuss third quarter 2009 results.
The call will be Webcast live at http://www.mdsinc.com/ and will
also be available in archived format at
http://www.mdsinc.com/investors/webcasts_presentations.asp after
the call. About MDS MDS Inc. (TSX: MDS; NYSE: MDZ) is a global life
sciences company that provides market-leading products and services
that our customers need for the development of drugs and diagnosis
and treatment of disease. We are a leading global provider of
pharmaceutical contract research, medical isotopes for molecular
imaging, radiotherapeutics, and analytical instruments. MDS has
more than 4,200 highly skilled people in 13 countries. Find out
more at http://www.mdsinc.com/ or by calling 1-888-MDS-7222, 24
hours a day. Caution Concerning Forward-Looking Statements From
time to time, we make written or oral forward-looking statements
within the meaning of certain securities laws, including under
applicable Canadian securities laws and the "safe harbour"
provisions of the U.S. Private Securities Litigation Reform Act of
1995. This document contains forward-looking statements, including
statements with respect to the impact of the proposed sale of MDS
Analytical Technologies on the Company's operations and financial
results, the strategy of the continuing businesses, the proposed
use of proceeds from the sale of MDS Analytical Technologies, if
completed, the Company's intention to sell other assets of the
Company, as well as statements with respect to our beliefs, plans,
objectives, expectations, anticipations, estimates and intentions.
The words "may", "could", "should", "would", "suspect", "outlook",
"believe", "plan", "anticipate", "estimate", "expect", "intend",
"forecast", "objective", "optimistic", and words and expressions of
similar import, are intended to identify forward-looking
statements. By their very nature, forward-looking statements
involve inherent risks and uncertainties, both general and
specific, which give rise to the possibility that predictions,
forecasts, projections and other forward-looking statements will
not be achieved. We caution readers not to place undue reliance on
these statements as a number of important factors could cause our
actual results to differ materially from the beliefs, plans,
objectives, expectations, anticipations, estimates and intentions
expressed in such forward-looking statements. These factors
include, but are not limited to: management of operational risks;
the strength of the global economy, in particular the economies of
Canada, the U.S., the European Union, Asia, and the other countries
in which we conduct business; the stability of global equity
markets; our ability to complete the proposed sale of MDS
Analytical Technologies and the intended sale of MDS Pharma
Services in a timely manner, or at all; our ability to retain
customers as a result of any perceived uncertainty relating to the
proposed sale of MDS Analytical Technologies and the intended sale
of MDS Pharma Services; the fact that our operations will be
substantially reduced as a result of the proposed sale of MDS
Analytical Technologies and the intended sale of MDS Pharma
Services; our likely need to negotiate a new credit agreement which
may not be on terms favourable to us; liabilities that we will
retain of businesses sold; our ability to complete other strategic
transactions and to execute them successfully; our ability to
remain in compliance with our senior unsecured notes and credit
facilities covenants; our ability to secure a reliable supply of
raw materials, particularly cobalt and critical medical isotopes;
the impact of the movement of certain currencies relative to other
currencies, particularly the U.S. dollar, Canadian dollar and the
Euro; changes in interest rates in Canada, the U.S., and elsewhere;
the effects of competition in the markets in which we operate; the
timing and technological advancement of new products introduced by
us or by our competitors; our ability to manage our research and
development; the impact of changes in laws, trade policies and
regulations, and enforcement thereof; regulatory actions; judicial
judgments and legal proceedings; our ability to maintain adequate
insurance; our ability to successfully realign our organization,
resources and processes; our ability to retain key personnel; our
ability to have continued and uninterrupted performance of our
information technology systems; our ability to compete effectively;
the risk of environmental liabilities; our ability to maintain
effectiveness of our clinical trials; new accounting standards that
impact the methods we use to report our financial condition;
uncertainties associated with critical accounting assumptions and
estimates; the possible impact on our businesses from third-party
special interest groups, certain of our employees subject to
collective-bargaining, environmental and other regulations; natural
disasters; public-health emergencies and pandemics; international
conflicts and other developments including those relating to
terrorism; other risk factors described in section 3.10 of our AIF;
and our success in anticipating and managing these risks. The
foregoing list of factors that may affect future results is not
exhaustive. When relying on our forward-looking statements to make
decisions with respect to the Company, investors and others should
carefully consider the foregoing factors and other uncertainties
and potential events. We do not undertake to update any
forward-looking statement, whether written or oral, that may be
made from time to time by us or on our behalf, except as required
by law. Also note that all financial data is shown on a U.S. GAAP
basis. MDS converted to U.S. GAAP reporting with the filing of the
Company's 2007 Annual Report and financial statements on January
29, 2008. Use of Non-GAAP Financial Measures In addition to
measures based on U.S. Generally Accepted Accounting Principles
(GAAP) used in this report, the following terms are also used:
adjusted earnings before interest, taxes, depreciation and
amortization (adjusted EBITDA); adjusted EBITDA margin; adjusted
earnings per share; operating working capital; and net revenue.
These terms are not defined by GAAP and our use of such terms may
vary from that of other companies. In addition, measurement of
growth is not defined by GAAP and our use of growth may vary from
that of other companies. Where relevant, and particularly for
earnings-based measures, we provide tables in this document that
reconcile the non-GAAP measures used to amounts reported on the
face of the consolidated financial statements. Our executive
management team assesses the performance of our businesses based on
a review of results comprising GAAP measures and these non-GAAP
measures. We also report on our performance to the Company's Board
of Directors based on these GAAP and non-GAAP measures. In fiscal
2009, net revenues, adjusted EBITDA, and operating working capital
are the primary metrics for our annual incentive compensation plan
for senior management. In fiscal 2008, adjusted EBITDA and
operating working capital were the primary metrics for our annual
incentive compensation plan for senior management. We provide this
non-GAAP detail so that readers have a better understanding of the
significant events and transactions that have had an impact on our
results, and so that these events and transactions can be viewed
from our management's perspective. MDS Inc. CONSOLIDATED STATEMENTS
OF FINANCIAL POSITION As of As of (UNAUDITED) July 31 October 31
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(millions of U.S. dollars, except share amounts) 2009 2008
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ASSETS Current assets Cash and cash equivalents $ 298 $ 117
Accounts receivable, net 132 264 Notes receivable 16 75 Unbilled
revenue 35 86 Inventories, net 96 85 Income taxes recoverable 48 61
Current portion of deferred tax assets 31 20 Prepaid expenses and
other 23 16 Assets held for sale 50 6
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Total current assets 729 730 Property, plant and equipment, net 272
301 Deferred tax assets 62 95 Long-term investments 22 30 Other
long-term assets 115 108 Intangible assets, net 128 155 Goodwill
419 452
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Total assets $ 1,747 $ 1,871
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LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts
payable and accrued liabilities $ 206 $ 266 Current portion of
deferred revenue 35 79 Income taxes payable 1 1 Current portion of
long-term debt 36 19 Current portion of deferred tax liabilities -
4 Liabilities held for sale 17 -
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Total current liabilities 295 369 Long-term debt 245 263 Deferred
revenue 15 10 Other long-term obligations 35 31 Deferred tax
liabilities 89 108
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Total liabilities 679 781
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Shareholders' equity Common shares at par - Authorized shares:
unlimited; Issued and outstanding shares: 120,137,229 and
120,137,229 as of July 31, 2009 and October 31, 2008, respectively
(Note 14) 489 489 Additional paid-in capital 77 75 Retained
earnings 224 301 Accumulated other comprehensive income 278 225
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Total shareholders' equity 1,068 1,090
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Total liabilities and shareholders' equity $ 1,747 $ 1,871
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MDS Inc. CONSOLIDATED STATEMENTS OF OPERATIONS Three months Nine
months (UNAUDITED) ended July 31 ended July 31
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(millions of U.S. dollars, 2008 except per share amounts) 2009 2008
2009 Restated
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Revenues Products $ 125 $ 155 $ 394 $ 475 Services 67 89 215 274
Reimbursement revenues 7 8 21 24
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Total revenues 199 252 630 773
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Costs and expenses Direct cost of products 81 95 245 296 Direct
cost of services 44 53 130 156 Reimbursed expenses 7 8 21 24
Selling, general and administration 57 53 156 173 Research and
development 16 19 44 61 Depreciation and amortization 21 23 62 70
Impairment of goodwill 25 - 25 - Restructuring charges, net 5 6 9 6
Change in fair value of embedded derivatives (11) - (9) 2 Other
expenses (income), net 7 10 7 3
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Total costs and expenses 252 267 690 791
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Operating loss from continuing operations (53) (15) (60) (18)
Interest expense (3) (5) (13) (11) Interest income - 3 6 13 Change
in fair value of interest rate swaps - - - 2 Equity earnings 9 14
24 38
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(Loss) income from continuing operations before income taxes (47)
(3) (43) 24
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Income tax (expense) recovery - current 11 (1) (3) (24) - deferred
(12) (1) (7) 24
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(1) (2) (10) -
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(Loss) income from continuing operations (48) (5) (53) 24 Loss from
discontinued operations, net of income taxes (14) (5) (24) (2)
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Net (loss) income $ (62) $ (10) $ (77) $ 22
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Basic and diluted (loss) earnings per share - from continuing
operations $ (0.40) $ (0.04) $ (0.44) $ 0.20 - from discontinued
operations (0.11) (0.04) (0.20) (0.01)
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Basic and diluted (loss) earnings per share $ (0.51) $ (0.08) $
(0.64) $ 0.19
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MDS Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS Three months Nine
months (UNAUDITED) ended July 31 ended July 31
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2008 (millions of U.S. dollars) 2009 2008 2009 Restated
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Operating activities Net (loss) income $ (62) $ (10) $ (77) $ 22
Adjustments to reconcile net (loss) income to cash provided by
(used in) operating activities: Items not affecting current cash
flows 90 33 142 55 Changes in non-cash operating assets and
liabilities (5) (6) 93 (140)
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Cash provided by (used in) operating activities 23 17 158 (63)
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Investing activities Acquisitions - (16) - (18) Purchase of
property, plant and equipment (11) (14) (25) (42) Proceeds on sale
of property, plant and equipment - - 3 3 Proceeds on sale of
short-term investments - - - 101 Proceeds on sale of long-term
investments 1 1 1 8 Proceeds on sale of businesses 35 15 35 15
Decrease (increase) in restricted cash (10) 1 (2) (2)
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Cash provided by (used in) investing activities 15 (13) 12 65
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Financing activities Increase in bank indebtedness - 15 - 15
Repayment of long-term debt - - (7) (81) Issuance of shares - 1 - 6
Repurchase of shares - (15) - (32)
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Cash provided by (used in) financing activities - 1 (7) (92)
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Effect of foreign exchange rate changes on cash and cash
equivalents 17 - 18 (2)
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Net increase (decrease) in cash and cash equivalents during the
period 55 5 181 (92) Cash and cash equivalents, beginning of period
243 125 117 222
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Cash and cash equivalents, end of period $ 298 $ 130 $ 298 $ 130
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MDS Inc. Consolidated operating highlights and reconciliation of
consolidated adjusted EBITDA (millions of U.S. dollars) Third
Quarter Year-to-date ------------------- -------------------
2008(1) 2008(1) 2009 Restated 2009 Restated
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$ 199 $ 252 Total revenues $ 630 $ 773 (7) (8) Reimbursement
revenues (21) (24)
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$ 192 $ 244 Net revenues $ 609 $ 749
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Net (loss) income from $ (48) $ (5) continuing operations $ (53) $
24 1 2 Income tax expense 10 - 3 2 Interest expense (income), net 7
(2) Change in fair value - - of interest rate swaps - (2) 21 23
Depreciation and amortization 62 70
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(23) 22 EBITDA 26 90 5 8 Restructuring charges, net 11 8 Impairment
of property, 7 11 plant and equipment, net 7 11 Write-down of
investments - - and valuation provisions 1 3 (7) - Change in FDA
estimate (7) (10) 25 - Impairment of goodwill 25 - - 1 Loss on sale
of business - 3 1 - Acquisition integration - 2
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$ 8 $ 42 Adjusted EBITDA $ 63 $ 107
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4% 17% Adjusted EBITDA margin 10% 14%
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(1) The comparative figures have been restated to conform to the
current year's presentation of discontinued operations.
Consolidated operating highlights and reconciliation of
consolidated adjusted Earnings Per Share Third Quarter Year-to-date
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2008(1) 2008(1) 2009 Restated 2009 Restated
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Basic (loss) earnings per share from continuing operations - as
reported $ (0.40) $ (0.04) $ (0.44) $ 0.20 Adjusted for:
Restructuring charges, net 0.03 0.04 0.06 0.04 Write-down of
investments/ valuation provisions - - 0.01 0.03 Impairment charge
of property, plant and equipment, net 0.04 0.06 0.04 0.06 Change in
FDA estimate (0.04) - (0.04) (0.06) Impairment of goodwill 0.21 -
0.21 - Change in fair value of interest rate swaps - - - (0.02)
Acquisition integration 0.01 - - 0.01 Write-off of tax assets - -
0.08 - Tax rate changes - - - (0.09) Loss on sale of business -
0.01 - 0.01
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Adjusted (loss) earnings per share from continuing operations $
(0.15) $ 0.07 $ (0.08) $ 0.18
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(1) The comparative figures have been restated to conform to the
current year's presentation of discontinued operations.
Consolidated operating highlights and reconciliation of
consolidated adjusted Income from Continuing Operations (millions
of U.S. dollars) Third Quarter Year-to-date
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2008(1) 2008(1) 2009 Restated 2009 Restated
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(Loss) income from continuing operations - as reported $ (48) $ (5)
$ (53) $ 24 Adjusted for (after tax): Restructuring charges, net 3
5 7 5 Write-down of investments/ valuation provisions - - 1 3
Impairment charge of property, plant and equipment, net 5 8 5 8
Change in FDA estimate (5) - (5) (7) Impairment of goodwill 25 - 25
- Change in fair value of interest rate swaps - - - (2) Acquisition
integration 1 - - 1 Write-off of tax assets - - 9 - Tax rate
changes - - - (11) Loss on sale of business - 1 - 1
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Adjusted (loss) income from continuing operations $ (19) $ 9 $ (11)
$ 22
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(1) The comparative figures have been restated to conform to the
current year's presentation of discontinued operations. DATASOURCE:
MDS Inc. CONTACT: MEDIA: Janet Ko, (905) 267-4226, ; INVESTORS: Kim
Lee, (905) 267-4230,
Copyright